Options Trading News

November 6, 2012  Tue 12:45 AM CT

The major equity indexes rallied yesterday afternoon to join the CBOE Volatility Index and VIX futures in positive territory.

The S&P 500 was up 3 points at the end of the day to close at 1417.26. It had traded below 1409 just after the open but climbed though the afternoon and hit its session high just before the bell. Support remains at 1403 and resistance at 1434.

The Nasdaq 100 followed the same pattern, rising 16.63 points to 2672.91. Like the SPX it is now right at its 10-day moving average. It has support at 2636 and resistance at 2701.

The Russell 2000 followed a similar pattern, though it saw most of its gains rights after dropping at the open. It was up 5.17 points to 819.54, gaining 0.63 percent, the exact same as the NDX in percentage terms. It has support and resistance 807 and 830 respectively.

The VIX was up 0.83 points, or 4.7 percent, to close at 18.42. It opened the day at 18.33 and peaked at 18.70, so the session's range was quite narrow. The VIX did show relative strength because it was a Monday, when the SPX options are repriced to account for the weekend time decay.

The spot VIX jumped above the November futures, which were up 0.25 points to 18.05. The December futures rose 0.25 points to 18.85.

More than 583,000 SPX options traded on the day, with 335,000 puts. The VIX options turned over 421,000 contracts, with calls outpacing puts by 2 to 1. The VVIX Index, which measures the implied volatility of the VIX options, continues to bounce off its lows, gaining 3.3 percent to 90.75.
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